Gold loses momentum – Analysis - 30-08-2016

Gold price approached from touching our first main waited target at 1310.65 and returns to fluctuate within sideways track around 1320.00, noticing that stochastic loses its positive momentum to reach the overbought areas, which supports the chances of continuing the bearish bias in the upcoming sessions, waiting to test 1297.75 level as a next main station.

Note that breaking 1310.65 level will complete forming bearish pattern that has the ability to push the price to extend its bearish correction towards 1249.95 direct, which urges caution when attacking the key support levels between 1310.65 and 1297.75 levels to confirm the next destination clearly, noting that the expected bearish trend will remain valid unless the price managed to breach 1358.00 level and holding above it.

Expected trading range for today is between 1297.75 support and 1340.00 resistance.

Expected trend for today: Bearish